29.03.2023 BDB discusses with employers' organizations complementary and bridge financing under NRRP

The Bulgarian Development Bank (BDB) has proposed for discussion to employers' organizations the upcoming programs for bridge financing and co-financing of projects under the European Structural and Investment Funds (ESIF) and the National Recovery and Resilience Plan (NRRP).

This happened during the second regular meeting of the Advisory Board to the Supervisory Board of the Bank, which was attended by representatives of the Bulgarian Industrial Capital Association (BICA), the Bulgarian Industrial Association (BIA), the Bulgarian Chamber of Commerce and Industry (BCCI), the Confederation of Employers and Industrialists in Bulgaria (CEIB) and the Union for Industrial Initiative (UIE).

As a bank whose strategic objective is to support small and medium-sized businesses, BDB plans to support Bulgarian enterprises applying for EU grant funding. These include programs for energy efficiency and renewable energy, technological modernization and renewal, etc.

The aim of the meeting is to consult on the financing opportunities while structuring the products, which will allow BDB to respond most adequately to the needs of businesses.

Under the first strand, the Bank will provide financing for companies that have submitted project proposals under the RRP and the ESIF. Both approved companies and those on the waiting list or rejected applicants can apply to BDB. In this way, the Bank will support the implementation of companies' investment plans, regardless of whether they are approved for a grant.

Under the second measure, the Bank is considering the possibility of financing building contractors that have a signed contract for the energy renovation of buildings. In this case, the Bank will not lend to the direct recipient of the grant, i.e. the state administration, municipalities, condominiums, etc., but to the building contractors. This measure will provide financial resources to the contractors, contributing to the timely completion of the projects and accelerating the energy renovation of the building stock in Bulgaria.

In addition to direct lending, BDB is also willing to assist through commercial banks to improve access to household financing under the National Household Renewable Energy Assistance Scheme. BDB is expected to propose for approval by the banks a loan guarantee program for individuals for the purchase and installation of solar installations for domestic hot water or photovoltaic systems.

Through the programs, BDB will help in the faster and more successful utilization of the NRRP and ESIF funds by providing financing for the timely start-up and implementation of the projects. This will further stimulate investments in priority sectors of the economy.